How To's
The Real Cost of Unishippers Global Logistics Franchise
By 2025, parcel service volume is globally expected to reach over 200 billion. It’s not surprising as the majority of purchases revolve around online services these days. We can admit that it’s more convenient to have our purchases delivered to our doorsteps. If you’re searching for a franchise that involves package deliveries, Unishippers Global Logistics is worth considering.
Here’s everything you need to know about Unishippers Global Logistics and more!
Unishippers Global Logistics Overview
Unishipper Global Logistics is a shipping service provider for small and mid-sized businesses at a competitive rate. It’s a service that provides consumers access to comprehensive tools, information, and resources that companies need to succeed. It started business and franchising in 1987. After 34 years in the shipping service business, Unishippers Global Logistics expanded by over 250 units.
Franchise
Unishippers Global Logistics, LLC, the franchisor, contracts with companies that provide the following:
- Small parcel via air express or ground delivery.
- Freight Shipping Service
- Other relevant transportation services with 3rd party carriers.
Acquiring a Unishipper franchise permits a franchisee to establish, promote, bill, and collect transportation services on customer’s accounts. The services include domestic and international carrier businesses. At the moment, the franchisor only offers national franchises for sale to prospective franchisees.
Training Program
The training for new owners is currently taught via online classes. It usually occurs on weekdays over approximately four days. It covers subjects such as:
- Administrative
- Compliance
- Sales Support
- Marketing
- Creation of business
- Sales plan
- Use of automation tools
- Using UONE, the franchisor’s computer software
Before attending the classes, it’s recommended to complete the fifteen hours long modules to be prepared. In addition to Unishippers’ New Owner Training, franchisees and their personnel may also be required to attend Basic Sales Training. Also, other sales-related training classes will be required based on the franchisor’s sole discretion.
Currently, no on-the-job training is required or provided by the franchisor. At the franchisor’s discretion, franchisors may also offer additional optional training. In addition, the franchisor currently provides one or more optional advanced training at least once per year.
Franchise Territory
An exclusive territory will not be granted to Unishippers franchisees. If franchisees choose to purchase a National Franchise, the franchisor will provide a non-exclusive right for their particular type of franchise. Using the non-exclusive right, franchisees can:
- Open or relocate Unishippers offices inside their designated “National Marketing Area” without the franchisor’s consent.
- Solicit Unishippers’ sales
- Accept Unishippers order
- Carry business as Unishippers franchising while using the brand’s marks
Franchisee’s Obligations and Restrictions
As one of the potential Unishippers franchisees, you need to know the following:
- Franchisees are personally liable for the fulfillment of obligations of the Unishippers franchise.
- As a business entity, each individual with 5% in the Unishippers franchise must personally join the franchise agreement. And each member will be required to sign a “Guarantee and Assumption of Obligations.”
- The franchisees must only sell, market, and promote services or goods described in the Unishippers Franchise Agreement. Such will be applied as standard unless authorized in writing by the franchisor.
- Franchisees are not allowed to sell to existing UPS customers. The transaction is not permitted unless the activity complies with the UPS Rules of Engagement and UPS Franchise Terms.
- Franchisees must meet a certain minimum in performance and other requirements under the Franchise Agreement.
If franchisees fail to meet the requirements in the Franchise Agreement, the franchisor can terminate their rights to franchise and market.
Terms of Agreement
The initial franchise length is five years unless terminated earlier by franchisee and franchisor due to the following terms:
- Mutual agreement
- The invalidity of specific provisions
- Inability to negotiate a Carrier Contract
- Certain breaches by the franchisee or franchisor
- Exercise a right to refuse or purchase option
After five years of the franchise contract, the franchisee can renew for another five years if specific requirements are met.
Unishippers Global Logistics Financial Assistance
Franchisees cannot finance any part of the Unishippers franchise fee with any of the following without the franchisor’s written approval:
- Person
- Partnership
- Corporation
- Other business entity
Currently, the franchisor offers to finance the initial franchising fee for a new National Franchise if franchisees meet the requirements. The financial assistance depends on franchisees’ qualifications and the franchisor’s then-current policy. It’s possible to finance up to 100% of the initial franchise fee for a period of up to 60 months. The offer will be set at an interest rate of the then-current prime rate and 2.5% APR.
The franchisor will file a UCC-1 or Uniform Commercial Code Financing Statement attached to the franchise agreement.
Did You Know?
- In more than 30 years of business, Unishippers is known as one of the top 3PL providers.
- Unishippers Global Logistics is a UPS authorized reseller.
- The shipping services company ranked as the #5 Top Freight Brokerage Firm for 2018.
- Unishippers franchise ranked for the seventh time in the Franchise Time Top 200 Franchise System.
Your Investments
The details listed below have been compiled from Unishipper Global Logistics’ 2021 FDD.
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $30,000 | $30,000 |
| Real Estate Deposit and Improvements | $1,500 | $10,000 |
| Fixtures, Furniture, Equipment and Signs | $2,500 | $7,500 |
| Computer Hardware and Software | $2,500 | $7,500 |
| Initial Inventory and Supplies | $250 | $1,000 |
| Utility Deposit and Costs | $50 | $500 |
| Telephone and Broadband Internet Service | $150 | $500 |
| Business Licenses and Fees | $100 | $2,500 |
| Broker Authority, BOC-3, Unified Carrier Registration, and Licensing Fees | $390 | $500 |
| Surety Bond | $600 | $1,300 |
| Automobile | $300 | $4,000 |
| Insurance (for the first year) | $525 | $2,500 |
| Organizational Expenses | $1,000 | $7,500 |
| Travel and Living Expenses (during training) | $1,200 | $8,000 |
| Additional Funds – 3-Month Initial Period | $9,000 | $150,000 |
| ESTIMATED TOTAL | $50,065 | $233,300 |
Other Fees
Other than your investments, you also have additional fees to look out for, such as:
| Type of Fee | Amount |
|---|---|
| Royalty Payments | The greater of: 18.5% of gross profit margin on shipments zero to 150 pounds and all other services and products. |
| Marketing Fund Contribution | 1% of gross profit margin. 1% increase per phase. |
| CRM Technology and Hosting Fee | Technology and Hosting Fee: $65.00 per territory per month. |
| Administrative Group Fee | 14%-26% of gross profit margin, depending on the type of shipment |
| Freight Manager Fee | Fee based on Unishippers system shipments transacted through Freight Manager. |
| Late Fees | Lesser of 10% or highest rate allowed by law of royalty payments, and marketing fund contributions not paid by due date. |
| Interest | Lesser of 18% per year or highest rate allowed by law on all overdue amounts. |
| Non-Sufficient Funds Fee | Payment returned for NSF will incur these fees: carrier payment and returned technology hosting fee |
| Amendment Fee | $500 – $3,000 |
| Debts to Carriers | Amounts billed by or owing to carriers on shipments, services and goods. |
| Other Debts | Amounts billed by or owed to third parties. |
| UPS Offset Fee | Variable. |
| Sales Kick Off and Any Other Mandatory Meeting Expenses | Registration fees vary between $0 and $450 per person |
| Insurance Payments | Amounts imposed by insurance companies. |
| General Indemnification | Varies |
| Inspection Charges | Costs of further inspections after the first one. |
| Audit Charges | Amount of understatement and costs of audit. |
| Debts at Termination | Payment of all debts owed to the franchisor and others. |
| Termination Indemnification and Costs | Indemnification of Unishippers and payment of all the franchisor’s costs related to the termination payment in the Franchise Agreement |
| Costs of Mediation/Arbitration | One-half of total cost. |
| Gross Profits from Customer Accounts Outside the Franchisee’s Marketing Area | Gross profits from customer accounts outside the franchisee’s marketing area. |
| Attorneys’ Fees and Costs | Varies |